Critical Contrast: Vertical Aerospace (NYSE:EVTL) vs. Redwire (NYSE:RDW)

Redwire (NYSE:RDW) and Vertical Aerospace (NYSE:EVTL) are both aerospace companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, valuation and dividends.

Profitability

This table compares Redwire and Vertical Aerospace’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Redwire	-70.32%	-16.24%	-7.20%
Vertical Aerospace	N/A	N/A	-489.91%

Valuation and Earnings

This table compares Redwire and Vertical Aerospace”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Redwire	$304.10 million	5.95	-$114.32 million	($3.17)	-3.45
Vertical Aerospace	N/A	N/A	-$998.35 million	($48.92)	-0.11

Redwire has higher revenue and earnings than Vertical Aerospace. Redwire is trading at a lower price-to-earnings ratio than Vertical Aerospace, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

8.1% of Redwire shares are owned by institutional investors. Comparatively, 81.2% of Vertical Aerospace shares are owned by institutional investors. 2.6% of Redwire shares are owned by insiders. Comparatively, 74.8% of Vertical Aerospace shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Redwire has a beta of 2.44, suggesting that its stock price is 144% more volatile than the S&P 500. Comparatively, Vertical Aerospace has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Redwire and Vertical Aerospace, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Redwire	2	3	6	0	2.36
Vertical Aerospace	1	0	6	0	2.71

Redwire presently has a consensus price target of $13.13, suggesting a potential upside of 19.86%. Vertical Aerospace has a consensus price target of $11.80, suggesting a potential upside of 121.80%. Given Vertical Aerospace’s stronger consensus rating and higher probable upside, analysts clearly believe Vertical Aerospace is more favorable than Redwire.

Summary

Vertical Aerospace beats Redwire on 7 of the 12 factors compared between the two stocks.

About Redwire

Redwire Corporation provides critical space solutions and space infrastructure for government and commercial customers in the United States, Europe, and internationally. The company provides avionics and sensors including star trackers, sun sensors, critical for navigation, and control of spacecraft; camera systems; solar array solutions for spacecraft spanning the spectrum of size, power needs, and orbital location; and strain composite booms, coilable booms, truss structures, telescope baffles, and deployable booms to position sensors or solar arrays away from the spacecraft. It offers software suite that enables digital engineering and generation of high-fidelity, interactive modeling and simulations of individual components, entire spacecraft, and full constellations in a cloud-based environment. In addition, the company microgravity payloads, radio frequency systems, antennas, star trackers, platforms, and in-space manufacturing and biotech facilities. Redwire Corporation is headquartered in Jacksonville, Florida.

About Vertical Aerospace

Vertical Aerospace Ltd., an aerospace and technology company, engages in designing, manufacturing, and selling zero operating emission electric vertical takeoff and landing (eVTOL) aircraft for use in the advanced air mobility in the United Kingdom. It offers VX4, an eVTOL aircraft. Vertical Aerospace Ltd. was founded in 2016 and is headquartered in Bristol, the United Kingdom.